Hong Kong’s Securities and Futures Commission (SFC) and the European Securities and Markets Authority (ESMA) have entered into a memorandum of understanding concerning the recognition of central counterparties.
The agreement sets out cooperation arrangements in connection with Hong Kong-established central counterparties (CCPs) which have applied for recognition by ESMA.
This cooperation arrangement fulfils a precondition under the European Market Infrastructure Regulation for ESMA to recognise CCPs as being eligible to provide services to clearing members or trading venues established in the European Union.
The CCPs established in Hong Kong which have applied for recognition by ESMA are; Hong Kong Securities Clearing Company, HKFE Clearing Corporation, the SEHK Options Clearing House and OTC Clearing Hong Kong.